Bill Text: OR HB2167 | 2013 | Regular Session | Introduced

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Bill Title: Relating to the Oregon State Lottery.

Sponsorship: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2167 Detail]

Download: Oregon-2013-HB2167-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 2659

                         House Bill 2167

Introduced and printed pursuant to House Rule 12.00. Presession
  filed (at the request of House Interim Committee on Human
  Services)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Establishes biennial goal for amount of net proceeds raised
from lottery games for purposes of creating jobs, furthering
economic development, financing public education in Oregon and
restoring and protecting parks, beaches, watersheds and native
fish and wildlife.
  Caps amount of net proceeds of Oregon State Lottery that can be
spent without approval of supermajority vote of chambers of
Legislative Assembly.
  Establishes Oregon Rainy Day Lottery Fund.

                        A BILL FOR AN ACT
Relating to the Oregon State Lottery; creating new provisions;
  and amending ORS 461.200, 461.510 and 461.540.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 461.200 is amended to read:
  461.200.  { + (1) + }   { - Within 105 days after the
confirmation by the Senate of the Director of the Oregon State
Lottery and at least three commissioners, the director shall
begin public sales of tickets or shares. - }  The Oregon State
Lottery shall be initiated and shall continue to be operated
 { - so as to produce the maximum amount of net revenues to
benefit the public purpose described in section 4, Article XV of
the Constitution of the State of Oregon, commensurate with the
public good. - }  { +  with the intention to produce net proceeds
in each biennium for the public purposes described in Article XV,
section 4, of the Oregon Constitution, in an amount equal to the
amount of net proceeds produced in the biennium beginning July 1,
2011.
  (2) Computer terminals and devices utilized by lottery games:
  (a) May sell, dispense or return tickets or shares directly to
members of the public; and
  (b) May not sell, dispense or return coins or currency directly
to members of the public.
  (3)  + }Other state government departments, boards,
commissions, agencies and their officers shall cooperate with the
 { + Oregon State + } Lottery Commission so as to aid the lottery
commission in
  { - fulfilling these objectives - }  { +  implementing this
section + }.
  SECTION 2. ORS 461.510 is amended to read:
  461.510. (1) All money payable to the  { + Oregon State
Lottery + } Commission shall be deposited in a fund known as the
State Lottery Fund. The State Lottery Fund shall receive all
proceeds from the sale of lottery tickets or shares, the
temporary loan for initial start-up costs and all other moneys
credited to the Oregon State Lottery from any other
lottery-related source. The State Lottery Fund is continuously
appropriated  { + to the Director of the Oregon State Lottery
 + }for the purpose of administering and operating the commission
and the state lottery.
  (2) Disbursements shall be made from the State Lottery Fund for
any of the following purposes:
  (a) The payment of prizes to the holders of valid winning
lottery tickets or shares;
  (b) Expenses of the commission and the state lottery;
  (c) Repayment of any funds advanced from the temporary loan for
initial start-up costs and the interest on any such funds
advanced; and
  (d) Transfer of funds from the State Lottery Fund to the
benefit of the public   { - purpose described in section 4,
Article XV of the Constitution of the State of Oregon. - }  { +
purposes described in Article XV, section 4, of the Oregon
Constitution, as follows:
  (A) Eighteen percent of the net proceeds of the state lottery
must be transferred, as required by Article XV, sections 4 (4)(d)
and (5), of the Oregon Constitution, to:
  (i) The Education Stability Fund established under ORS 348.696
pursuant to Article XV, section 4, of the Oregon Constitution;
and
  (ii) The School Capital Matching Fund established under ORS
286A.806 pursuant to Article XI-P, section 4, of the Oregon
Constitution;
  (B) Fifteen percent of the net proceeds of the state lottery
must be transferred as required by Article XV, section 4 (8), of
the Oregon Constitution, to the Parks and Natural Resources Fund
established in ORS 541.940; and
  (C) The remaining net proceeds must be transferred to the
Administrative Services Economic Development Fund established in
ORS 461.540. + }
  (3) As nearly as practical, at least 50 percent of the total
projected revenue, computed on a year-round basis, accruing from
the sales of all state lottery tickets or shares shall be
apportioned for payment of prizes.
  (4) Expenses of the state lottery shall include all costs
incurred in the operation and administration of the state lottery
and all costs resulting from any contracts entered into for the
purchase or lease of goods or services required by the commission
including, but not limited to, the costs of supplies, materials,
tickets, independent audit services, independent studies, data
transmission, advertising, promotion, incentives, public
relations, communications, compensation paid to lottery game
retailers, bonding for lottery game retailers, printing,
distribution of tickets and shares, reimbursing other
governmental entities for services provided to the state lottery,
transfers to a contingency reserve, and for any other goods and
services necessary for effectuating the purposes of this chapter.
No more than 16 percent of the total annual revenues accruing
from the sale of all lottery tickets and shares from all lottery
games shall be allocated for the payment of the expenses of the
state lottery. The commission shall determine the amount
necessary for a reasonable contingency reserve within the amount
allocated for payment of expenses.
  (5) The state lottery shall pay all prizes and all of its
expenses out of the revenues it receives from the sale of tickets
and shares to the public and turn over the net proceeds
 { - therefrom to a fund to be established by the Legislative
Assembly - }   { + to the funds described in subsection (2)(d) of
this section, + } from which the Legislative Assembly shall make
appropriations for the benefit of the public   { - purpose
described in section 4, Article XV of the Constitution of the
State of Oregon - }  { +  purposes described in Article XV,
section 4, of the Oregon Constitution + }.
  (6) Moneys in the State Lottery Fund may be invested as
provided in ORS 293.701 to 293.820. Interest earned by the fund
shall be credited to the fund.
   { +  (7) If, in any biennium, the net proceeds available for
the benefit of the public purposes described in Article XV,
section 4, of the Oregon Constitution, exceed the amount of net
proceeds described in ORS 461.200:
  (a) The amount transferred for that biennium pursuant to
subsection (2)(d)(C) of this section may not exceed the amount
described in ORS 461.200; and
  (b) The remaining amount of net proceeds must be transferred to
the Oregon Rainy Day Lottery Fund established in section 4 of
this 2013 Act. + }
  SECTION 3. ORS 461.540 is amended to read:
  461.540. (1) There is established in the General Fund of the
State Treasury the Administrative Services Economic Development
Fund. All moneys transferred from the State Lottery Fund,
interest earnings credited to this fund and other moneys
authorized to be transferred to this fund from whatever source
are appropriated continuously  { + to the Oregon Department of
Administrative Services + } for any of the following public
purposes:
  (a) Creating jobs;
  (b) Furthering economic development   { - in Oregon; or - }
 { + ; + }
  (c) Financing public education { +  in Oregon; or
  (d) Restoring and protecting Oregon's parks, beaches,
watersheds and native fish and wildlife + }.
    { - (2) Moneys shall be transferred from the Administrative
Services Economic Development Fund to: - }
    { - (a) The Education Stability Fund established under ORS
348.696 as described in section 4, Article XV of the Oregon
Constitution; and - }
    { - (b) The School Capital Matching Fund established under
ORS 286A.806 as described in section 4, Article XI-P of the
Oregon Constitution. - }
    { - (3) - }   { + (2) + } As used in this section and
 { - section 4, - }  Article XV { + , section 4, + } of the
Oregon Constitution:
  (a) 'Creating jobs' includes, but is not limited to:
  (A) Supporting the creation of new jobs in Oregon;
  (B) Helping prevent the loss of existing jobs in Oregon;
  (C) Assisting with work transition to new jobs in Oregon; or
  (D) Training or retraining workers.
  (b) 'Education' includes, but is not limited to,   { - the
Education Stability Fund established under ORS 348.696 and - }
specific programs that support the following:
  (A) Prekindergartens;
  (B) Elementary and secondary schools;
  (C) Community colleges;
  (D) Higher education;
  (E) Continuing education;
  (F) Workforce training and education programs; or
  (G) Financial assistance to Oregon students.
  (c) 'Furthering economic development' includes, but is not
limited to, providing:
  (A) Services or financial assistance to for-profit and
nonprofit businesses located or to be located in Oregon;

  (B) Services or financial assistance to business or industry
associations to promote, expand or prevent the decline of their
businesses; or
  (C) Services or financial assistance for facilities, physical
environments or development projects, as defined in ORS 285B.410,
that benefit Oregon's economy.
  SECTION 4.  { + (1) The Oregon Rainy Day Lottery Fund is
established in the General Fund. The Oregon Rainy Day Lottery
Fund consists of moneys transferred to the fund pursuant to ORS
461.510 (7). Moneys in the fund may be used for the public
purposes described in ORS 461.540 (1).
  (2) The Legislative Assembly may appropriate moneys from the
Oregon Rainy Day Lottery Fund only if the appropriation is
approved by three-fifths of the members serving in each house of
the Legislative Assembly and the Legislative Assembly finds one
of the following:
  (a) That the last quarterly economic and revenue forecast for a
biennium indicates that moneys available to the General Fund for
the next biennium will be at least three percent less than
appropriations from the General Fund for the current biennium;
  (b) That there has been a decline for two or more consecutive
quarters in the last 12 months in seasonally adjusted nonfarm
payroll employment; or
  (c) That a quarterly economic and revenue forecast projects
that revenues in the General Fund in the current biennium will be
at least two percent below what the revenues were projected to be
in the revenue forecast on which the legislatively adopted budget
for the current biennium was based.
  (3) Once each month, the Oregon Department of Administrative
Services shall calculate the amount of General Fund interest that
is attributable to moneys in the Oregon Rainy Day Lottery Fund
and transfer the amount calculated under this subsection to the
Oregon Rainy Day Lottery Fund.
  (4) The Legislative Assembly may not appropriate for any one
biennium more than two-thirds of the amount that is in the Oregon
Rainy Day Lottery Fund at the beginning of that biennium. If the
appropriation is for a biennium that has not yet begun, the
Legislative Assembly may use as the base the most recent estimate
of the amount that will be in the Oregon Rainy Day Lottery Fund
at the beginning of the biennium for which the appropriation is
made.
  (5) As used in this section, 'legislatively adopted budget '
has the meaning given that term in ORS 291.002. + }
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